[inaudible conversations] >> i get to the question that i had, please? did the president reveal a city? i mean, the spin is that the president revealed the name of the city, and that gave away information that undermined an ally. >> okay. i will answer -- [laughter] okay, so all of you are very familiar with the threat from isis. all of you are very familiar with the territory it controls. if you were to say, hey, from where do you think a threat might come from territory that isis controls, you would probably be able to name a few cities, i would think x. so so it was, it was nothing that you would not know from open source reporting in terms of a source of concern. and it had, it had all to do with operations that are already ongoing, had been made public for months. [inaudible conversations] >> sorry, back to my question, sir. was this information that was shared with the russians also the same content that was shared with our allies?

and specific to the threat which the president said was in relation to airlines, is it an imminent threat? was there a justification for in that moment needing to share it with the russians? >> i don't want to get into specifics of what exact information is shared with what exact allies, but information on this topic of the threat to aviation was shared with multiple allies. and as you know, there are already policies being put in place to protect against that threat. and you, and you and many others have reported widely on this. >> -- something that our allies did not. is that what you're saying? >> in terms of the specifics, i have no basis for comparison on what was shared with what country. but i will tell you it was our impression of all of us that were in the meeting, which i've mentioned already, was wholly appropriate given the purpose of that conversation and the purpose of what the president was trying to achieve through that meeting. >> but was there an imminent threat? >> general, when you came out after the story broke, you said

that the president did not disclose any sources or methods, he did not reveal anything about military operations. why were you denying things that were not even reported? what the report said is that the president revealed classified shared by one of our allies in the middle east. the question is simply a yes or no question here, did the president share classified information with the russians in that meeting? >> as i mentioned already, we don't say what's classified, what's not classified. what i will tell you again is that what the president shared was wholly appropriate. the story, the story combined what was leaked with other information, and then, insinuated about sources and methods. so i wanted to make clear to everybody that the president in no way compromised any sources or methods in this conversation. >> can you say national security is put at risk by leak of this?

do you have any idea how this got out and what steps are you taking by virtue discovering this as you tried to limit the potential of more leaks of national security information? >> i think national security is put at risk by this leak and leaks like this. as you know there are a number of instances where this has occurred. i think it is important to investigate these sort of things and make sure that we have trusted organizations across our government that allows for the free sharing of information and collaboration. i mean in terms of national security what is critical you can assemble the experts you need. you want a bigger group, right? for any of these complex problems because you need their expertise. you need tools they bring to bear from different agencies and departments. what we really have to do is make sure we have a very high degree of confidence in all of our organizations and systems and processes so we need to do for the president, which is give our best advice and give him

options to deal with very complex problems. >> clearly you can't have confidence by virtue of what happened yesterday. do you have an idea how this got out? how can you tighten up the ship as it were, insure from your perspective that this stuff doesn't get out? >> it is incumbent upon all of us to bring people with the right authorities and mandate to see how this leak occurred and other leaks occurred. >> general mcmaster, put a finer point, is there now an active investigation how this information was leaked and can you tell us who is running that investigation and also would like to ask you, given that president trump has now going to be meeting face-to-face with literally dozens of foreign leaders, if there is sensitivity to his discretion in what sort of information to decide to classify, how is that something that you were advising him ahead of the foreign trip? >> well i mean, there are no sensitivities in terms of me or anybody who has been with the president and many of these

engagement. he shares information in a way that is wholly appropriate. i should just make maybe the statement it here that the president wasn't even aware where this information came from. he wasn't briefed on the source and method of information either. so i'm sorry this got to be last question because we have the president of turkey coming momentarily. thank you very much. [shouting questions] >> we have more questions, general. >> who is investigating the leaks? neil: welcome, i'm neil cavuto, you've been listening ever so briefly to h.r. mcmaster, the general in charge of national security for president explaining his position and details yesterday that the president he says did not put any national security at risk or share information that could be gleaned at. he pointed out the confidentiality put at risk by leakers, more to the point.

and it was wholly appropriate that the president was discussing this with our partners, one thing we and russians share is united fight against isis. this was in that vein. the president the did not come come -- compromise at any point not only our security or relationships that provide this intelligence with our allies. he also pointed out again and again by the way this is aimed at dealing with our shared interests in fighting isis and fighting terror and that nothing that the president disclosed compromised those relationships or more to the point any of the security that has come up and the criticism at least from "the washington post" revealed here that would call that into question. so, where does this stand right now as the administration prepares to greet turkey's president today? someone with whom it had battles back and forth over leaked intelligence as well. remember the turks are concerned

what we're doing regarding isis and using syrian kurds to fight off isis, the same group the turkish president argued has elements in turkey. he is against that and that those secret funding details once they got out ticked off turkey's leader. you have to think going into what will be the president's first foreign trip with better than a dozen world leaders on this issue, how much is disclosed, how much is revealed and how much the president can be trusted. you can understand why this is such a thorny issue right now. but again, i do want to take your attention to what is happening at the corner of wall and broad with the markets have funny way of digesting this. would you think if there is security lapse or president is giving away state secrets or worse, whatever you think of these charges they would push back near and dear things like, you know, tax reform, big ol' tax cuts, health care reform,ing

are laboratory relief, maybe a trillion dollar infrastructure proposal. if all of that was in doubt, then why are stocks more than holding their own? market watcher keith fitzgerald, and dineen borelli. how do you think the general comported himself in the light of these attacks that the president spilled the beans on something he shouldn't have? >> i think mcmorris, mcmaster, excuse me set the record straight. we wanted to hear from the leaders in the white house what happened? neil, i think we're witnessing with president trump is that he is fighting a lot of forces right now. you look at biased media, from what i was reading "the washington post" was celebrate the fact they had so much traction with this news story. you look at democrats who will do and say anything to block president trump in his efforts.

there is also the deep state intelligence within the administration, with the leaks, that really need to be taken care of. then you have the squishy republicans like bob corker ran with the headline from this "washington post" story saying that the administration is in a downward spiral. didn't even have all of the facts. so president trump is fighting a lot of fronts here. so what we really need is to really get to the bottom of the leaks, get republicans on board with his agenda and hold media accountable, the biased media accountable for the biased reporting they're doing. neil: i understand biased media, there is ample ground, the kind of thing this is happening, administration properly goes who the heck is leaking this stuff, it is leaking out and leaking out in an effort to many bear as the president, to say, ah-ha there he go again. do you think there is a concern

that this president talks to much? >> certainly people think that but he is very effective at political jujitsu. general mcmaster gave a scathing but calm indictment of the leaking that is being promulgatedç by people who have no authority -- neil: just in and of itself, gail, it keeps happening, these leaks keep happening? it might be battle with intelligence agencies fair enough. the two had acrimonious relationship since the campaign but doesn't seem to be dying down that is he commander-in-chief, if anything it is picking up? >> i don't think it is picking up. criticism by the mainstream media, working in concert with the leakers in this administration imperilling our national security. unfortunately for the mainstream media, continuing with hysteria, lies, fake news will make them more successful derailing all those things you pointed out, tax reform, making sure we get regulatory reform, getting an

infrastructure deal. i think it is going to backfire on the mainstream media, they don't understand they're you know mining themselves. their approval rate at all-time low as well. constant attacks on president trump and his administration is going to backfire. they have become part of the resistance movement. yet they see that he is advancing on with his agenda despite their efforts to the contrary. neil: maybe that is what the market sees, because left or right, you know, red or blue, keith, they do want, that is to see these tax cuts come to prue wigs, this health care fix come to fruition, some of infrastructure stuff and boost to the economy come to fruition, but when we get developments like this and the markets seem to ignore it, is it their way of saying we don't think it will develop into much? >> i think you're absolutely right -- neil: keith first. i will go to you, dineen. >> sorry. sure. >> understand the psychology of traders here, neil. this is what it really hits on.

traders don't have luxury of playing red or blue. they don't have a luxury of playing sides. they have the responsibility associated with trillions of dollars of real real assets into future. they're pragmatic and i'm one of them. does this affect the certainty or uncertainty of our profit potential, 20 years down the line? that is what is going on with traders. what they're saying they don't care about the leaks. let that stuff get sorted out, because it will. what they care about this materially doesn't undermine the profit potential with the best companies, does not undermined with associated with trends they follow. neil: all right. dineen, you were very supportive of when this sort of stuff blows up to back the president here but do you think there is something in his manner, not to disparage him, outsider status going into the white house he is not familiar with the

comportment, political conformity, how you deal with these things that you know, it is old line loose lips sink ships? and that he is in danger doing that in free-wheeling discussions, very thing got him elected president could hurt him as president? >> well, he is certainly not your career politician, neil. he is not a part of the establishment. and that was the appeal to voters and that is why he got elected. and other thing he is able to get his message around the biased media through tweeting or going to these rallies in states where people flock there in the thousands because they want to support president trump and they want to hear his message directly. so, i think, a lot of this has to do with the media and democrats, they are unable to control president trump. that is a lot, part of the reason why we're seeing all of these leaks and other things happening because they are fighting him in every aspect that they can. neil: gail, do you think he keeps providing them ammunition though? >> no, they're looking for it.

think about when president obama ordered our intelligence communities to release confidencal classified information to the communist cuba government, did the mainstream media had hysterical reaction to that and write article and write article how that was damaging our flags security? they didn't. -- national security. not that president trump is providing ammunition. he is actually doing what he set out to do in this campaign promises and washington, d.c., and the mainstream media want to derail it at all costs. neil: keith, final word? >> i tell you what, diplomacy does not come down to sound bites. the press, regardless which side they fall on, right wrong, left, right, does not understand the nature of the game being played here. somehow if it is fantasyland that is the whose tushing about all this. they would rather see rome burn and 330 million americans in the

process. neil: thank you very much. a disney movie about pirates that might have been pirated out and demanding ransom so disney doesn't see that leaked out ahead of this official debut in a couple weeks. wow. ♪

neil: you just heard the national security advisor, general h.r. mcmaster say that the president was wholly appropriate what he shared with the russians and nothing was compromised including our security or relationships that with those of our allies who provide such material information to us. that this was something that the administration was doing with russians because we have a shared interest in bringing down isis. now we're getting word that the cia director will be briefing the house intelligence committee on this very same issue and that what classified information might or might not have been shared by the russians in short order. we'll keep you posted on that. meanwhile, north korea, i'm not talking about a missile attack. i'm talking about a cyberattack. that "wannacry" cyber movement going after computers across the globe, 150 countries might have north korean roots.

tracee carrasco with that. what are you hearing? reporter: neil, cybersecurity experts say initial digital clues point to north korea in that hack that locked computers in britain's hospital network, germany's national railway and many other companies. parts of "wannacry" ransom wear used psalm code as malware previously distributed by a north korea linked hacking group. researchers found similarity in the cyber attacks against polish banks in february, bangladesh central bank hack in 2016, and sony pictures entertainment hack in 2014. another possible clue, digital use of bitcoin. hackers demanded 300 to 600 in bitcoin. estimated $50,000 were paid out. those who paid did not recover their systems. in total 300,000 systems were affected in more than one 50 countries around the world. experts believe the virus is

contained now begins the estimate of how much it cost companies. a silicon valley firm estimated cost of computer down time and loss of productivity due to the cyber hack to be $8 billion globally. a report from cybersecurity ventures estimated that such hacks caused losses of $1.5 billion in 2016 around global spending on cybersecurity will jump to $100 billion this year from just $3.5 billion in 2014. now i just got off the phone with a data security lawyer who says the cyberattack could spark lawsuits but not against microsoft. businesses affected did not update their microsoft windows. they could be subject to inquiries by the ftc lawsuits against companies that failed to produce a product or service. those lawsuits could happen but they're not very likely. neil: okay. tracee, thank you very, very

much. you can be hacked in all sorts of ways here. netflix is finding out a lot of favorite shows somehow got taken by this "wannacry" group and they were threatening to leak the information and the shows before their season debuts. had the same happen with disney we're told. ceo bob iger saying one of its movies might have been hacked and the ransomers want payment for that or they're going to release it in dribs and drabs before its opening. everyone seems to think that could be the incomes "pirates of the caribbean" movie due out on the weekend of the 26th. that would sort of have a full circle sort of statement to make here, you know, pirates, taking a pirate movie. hillary vaughn outside el capitan theater in hollywood with the very latest. hillary? reporter: neil, disney won't officially confirm they're being blackmailed by hackers and we don't know who these cyber criminals are but we do know

what they're threatening to do if disney doesn't pay up. they told "the hollywood reporter" that disney ceo bob iger told reporters in new york that hackers were holding one of their movies hostage and threatened to leak it if they didn't give them a massive bitcoin payment. iger said they have no intention paying hackers off. hoare is what the hackers are promising to do, they will leak the first five minutes of the movie online, if disney still doesn't pay up, they will release the movie in entirety by 20 minute increments. we don't know what movie the cyber thieves were able to pirate, we do know, two disney popular franchises, "pirates of the caribbean" and "cars" are coming out with movies. they have been lucrative franchises for studio. "cars" has generated one billion dollars in total lifetime gross. pirates has earned 3.7 billion lifetime gross with four movies. sources tell deadline, they believe the movies hackers have

their hands on, "pirates of the caribbean" fifth installment. "dead men tell no that's" expected to premier friday in theaters. neil: we have a cybersecurity expert. brian, how do we stop this sort of thing because it seems to be out of control? >> well the first thing we need to do which the president isn't getting enough credit for, president trump, we need to start going after hackers. he issued an executive order last week that talked about a lot of new strategies for the u.s. government protecting its ownç systems, working with the private sector but also included in there which didn't get much notice a focus on cyber deterrents, actually going after criminals. actually created standards and norms and consequences for hackers, whether they be individuals, activists or foreign governments. that is incredibly important. we have to inflict pain on hackers and make sure that they understand this isn't a crime they can just get away with, collect their bitcoin and sit on their couch and go on to a new

target. neil: are you surprised they have gotten very little money, ransom money, using bitcoin which is a internet currency if you will, hard to trace but 40 or $50,000. so it is clear a lot of people aren't paying this or if they are, they discovered they're not getting encryption to free that information. so they're saying to hell with it, what do you make of that? >> that is very surprising. you would have thought with how widespread this ransomware, the "wannacry" ransomware is you would have seen more payments eggs specially from individuals. actually, more surprising what you talked about recaller, and just mentioned is the fact that they're not getting decryption as a result of payments. people who actually pay up. that is the worst-case scenario for these hackers. may reveal more about the motivation. if it was a legitimate criminal group, if there is such a thing, they would actually descript so they can continue their scam. this may indicate that perhaps it was a terrorist group. perhaps it was rogue individuals. perhaps a nation-state how to do

something nefarious and they don't care about the consequences. they were masquerading as ordinary ransomware criminals. neil: the north korean angle do you buy that. >> i think it is possible. north korea can make as much money with cyber hacks breaking into the bangladesh banks as selling missiles or drugs or heroin. i wouldn't absolutely link the two at this point. there is so much code out there available from russians, north koreans, iranians, venezuelaians, all different groups and you can make pieces look like conducted by one country, one group but it was by someone else. time will tell. neil: brian finch, cybersecurity expert. as he was speaking we have update on laptop ban that airlines have imposed. it will expand beyond the middle east and parts of europe. we don't know where it will

expand. but the rule of thumb, if you have a laptop, going to any of these areas in the world, you can't bring it, nor leaving from those areas back into the united states. so they could be hitting lots more countries on this similarly ♪

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>> what i'm saying problem miss of that article is false, that in any way the president had conversation that is inappropriate or resulted in any kind of lapse in national security. so i think the real issue, i think what would like to see debated more is national security has been put at risk by

no way any sources with russian officials but i want to bring van hipp, former assistant secretary of the army in this. van, here is where i'm confused. i will defer to you as the expert. joined by walid phares as well. welcome to both of you. the president himself tweeted out, as president i wanted to share with russia at openly scheduled white house meeting, which i have the right to do, facts pertaining to terrorism and airline flight safety, humanitarian reasons, plus i want russia to greatly step up their fight against isis and terrorism. so, which is it? van, to you. >> well the president of the united states, neil is the commander-in-chief. he sets foreign policy of this country. not some nameless, faceless bureaucrat who is upset donald trump was elected president of the united states.

who do we believe? do we believe active duty three-star army general of impeccable integrity of character, nameless, faceless bureaucrat that leaks something to the "washington post." i believe -- neil: these people are speaking a little differently, van. that is what i noticed here. one is saying that the general, no intelligence sources or methods were discussed. the president saying i have absolute right to share the facts pertaining to these issues. now that might, you're right, i understand the president can glean what he wants to be germane and get out there, but obviously someone rushed to the various agencies to say, wait, whoa, whoa, we can't to give you heads up, this got out and we want to you know why. >> probably the same people who rushed and told about his conversation with the prime minister of australia and president of mexico. there is the real danger. neil: so the leakers are the problem to you. walid, are the leakers still the problem to you?

van does raise an issue does come up again, someone is out to get this stuff out there. sometimes within nanoseconds of the president saying something, whether he blurted it out or not. so are these intelligence agencies with whom he had acrimonious relationship during the campaign continuing to try to undermine him? >> well the leaking is certainly a problem and as long as it is inside of the system. what worries me or makes me concerned how do we serve the public. we have 330 million americans who are wondering not convinced of either side. for example, if the media starts with this story, going to congress and have appropriate committees dealing with the issue what is happening, it is broadcasting information without any source. if i'm a citizen and i read that report, i don't have any source. i don't have enough information of what happened. i have only have a conclusion that this is wrong but, who can determine this is wrong or right

if something is not clear and initial reporting by the media? neil: do you think, van, deliberately or not, i don't think deliberately, the president, owing to the fact he is not seasoned and not typical politician? he might have just said stuff he shouldn't have said. >> the president during the campaign talked about working with russia on common ground of fighting isis or fighting radical islam. if you will remember that, look what general mcmaster said today, basically what the president said with regards to military operations was all open sourced, information we shared with allies or someone could learn about through open source but make no mistake, this president is trying to find common ground and get all allies support we can to fight radical islam, what we campaigned on, general mcmaster said the conversation was wholly appropriate.

he is sets foreign policy. he is the commander-in-chief. there are folks in the intelligence community maybe need to looks at the constitution on that one. neil: gentlemen, thank you very much. fast-moving developments including right now this concern about the wanna crime movement that compromised internet systems around the globe. that is part of infrastructure. that is something the administration wants to address as well, part of a one trillion dollar infrastructure plan. former transportation secretary ray lahood how likely that looks after this other soap opera. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

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they're not going to stop. we'll see how it goes. separate meetings on infrastructure going on in the nation's capitol right now. there is growing concern, that whatever the distractions are

working on the way to, that the president has a trillion dollar plan to address strack squawk that prompted angry responses from those waiting for that funding, for that money. richard trumka, my question to the white house and congress is this where is the bill? it is go-time. bring legislation to the floor and labor movement will help you pass it. to former transportation ray lahood. what do you make of that? a lot easier said than done to get going on this. it's a big, big figure, a trillion dollars. how likely is it? >> neil, first of all thank you for being interested in infrastructure today in otherwise very busy day. those of us that care about infrastructure really appreciate it and, i think the stars are still aligned pretty, pretty carefully and pretty closely to get a bill. secretary elaine chao, secretary of transportation gave a very

good speech yesterday, gave a very positive speech, talking about the idea that the trump administration wants to put forth a big, a big bold plan and the money and. people are very encouraged 10 days ago. president trump talked about raising the gas tax to get some resources. secretary chao yesterday talked about public/private partnerships to get the money. i'm, i'm still encouraged, neil. whether it's a trillion dollars or not you think it is still coming? it might be a couple weeks off but it is still coming. i didn't realize until today, sir, that a lot of that, the whole "wannacry" and the internet, pirating that has been going on that is under the umbrella of infrastructure as well and do you think that then gets addressing in whatever package the administration and congress come up with? no i think it is certainly

logical to consider it there. when you look at how vulnerable the faa is in terms of all the people in the faa who guide planes in and out of airports, you know, cybersecurity is very, very important in that arena for sure. neil: you know, you mentioned airlines, so if i would be remiss if i didn't mention other news developments, sir, expand crackdown on laptops coming to and from countries we deem to be dangerous. it used to be largely the middle east. it has extended to points in eastern europe but might expand to more countries than earlier thought. we don't know what the countries are. what do you think of this? someone is concerned about something. >> neil, i think there needs to be a much better explanation of this. i don't know the distinction between putting laptops in the belly of the plane as opposed in the plane. if they're in the belly of the plane i assume they're still susceptible to some kind of

activity but it needs to be better explained. we know the countries that are named, some of those countries are safe harbor for terrorists. neil: right. >> but the idea of the technology being in a different place, i don't know exactly, you know, how that really makes them, you know, safer than if they were in the, in the plane. i just think, a better explanation is really needed. neil: do you think air travel today has just gotten nuts? with some of these incidents a lot of people capture on the their smartphones but a lot of unruly passengers, equally unruly flight attendants, maybe it is just they're crowded up there, tempers are short up there. sometimes before we get up there, before leaving the ground. does this require a government response or these just taken out of context and air travel itself is just fine? >> you know while we were at the d.o.t. we put into place the

passenger bill of rights which said you can't be on a tarmac more than three hours. a number of other things, that we thought were helpful to passengers. i certainly think d.o.t. has an obligation to look at what is going on in the airlines. if people are a little bit nervous as they go through the security lines, they're a little bit nervous when they get on the planes. neil: right. >> they're a little bit nervous in the cramped quarters. there has to be sensitivity to all of this on the part of the airline industry, that you know, people today are nervous about flying, and, some of these incidents, you know, perhaps could have been prevented by good training from the airline industry. neil: secretary, i think one of the most brilliant things you did under your stewardship when you did the passenger bill of rights allow people stuck on a tarmac to go to the bathroom after a while. >> exactly. neil: my bladder appreciated that. let me get your sense, you see what is going on with everything

in the trump administration, it is not your purview, i grant you, but getting in the way of other items he wants to get done? whether it is infrastructure you alluded to or tax cuts whether you agree or disagree but when i look at the markets, secretary, they all seem to think it will work out and still coming, are you? or these kind of distractions, you've seen them, worked under republican and democratic administrations alike, do you worry this is going to get in the way and maybe define the trump administration whether he likes it or not? >> look it, one cautionary thing i would say, i have been in politics 35 years, i watched a lot of presidents, every president gets first year to get two or three big things done. i hope they don't blow it. i'm still optimistic, that they will probably get some tax reform and they will get an infrastructure bill. if those things don't happen by august, neil, they have blown it.

you get about a year. look at -- neil: outline of it, or is it a vote by then? >> yeah. i mean, then congress goes home for the month of august. then they come back and then, a year from now, neil, every member of congress will be worried about their re-election. they have got until about august or september to really do a couple big things. i'm optimistic they will do it, because the president is still talking a lot about it. now, you know, we've got to get congress moving. neil: all right. secretary very good seeing you. neil: ray lahood, former secretary of the transportation. you have to be of certain age, dr. doom, he was not a a guy who had uncanny prescience, not only seeing inflation before others did, but bull market before others did.

henry kaufman, the man behind that and what we have to look forward to it or not. after this.

neil: they won't do the presser

deals given the timing going on that. is not a big shock. they will issue a joint statement. they are chatting but that is about the most you can look forward to. meantime connell mcshaun has the latest on the hunt for a new fbi director. serious names are coming up. hey, connell. reporter: you almost forget about it but few names are being thrown around. one exception would be congressman trey gowdy, republican from south carolina ought of running to be the fbi director. he spoke to jeff sessions, attorney general, told him he wouldn't be the right person for the job. in terms of who would, all gowdy would say, director not only with impeccable credentials but one that can unite the country as we strive for justice and truth. we're left with many of the same names to speculate about. interviews over the weekend. justice department officials conducted likes of congressman mike rogers, getting a lot of mentions, former fbi.

john cornyn has been talked about. judge henry hudson and frances townsend have been talked b. along others. some members of congress talked about judge merrick garland. you have breaking news from the white house. neil: indeed, buddy. we'll see if they're saying anything here. this is moments ago, the two leaders, president of turkey. >> it's a great honor to have president erdogan from turkey here. we're going to have a long and hard discussions. i know that they will be very successful. we've had a great relationship and we will make it even better. so we look forward to having, very, very strong and solid discussions, we'll be having lunch in a little while, we'll make a statement right after this, in the roosevelt room. thank you very much.

[shouting questions] >> mr. president, did you share classified intelligence information with the russians. >> thank you very much. >> mr. president, did you share classified information with the russians? [shouting questions] >> thank you. >> thank you. >> mr. president, no comment whether you shared classified intelligence with the russians? >> thank you. thank you. >> thank you. please. >> thank you, sir. neil: that is the president's way of saying really, you think i will answer any of these questions? what part of bye-bye don't you understand? joint statement coming from the turkish president and his american counterpart, of course, donald trump coming very shortly. meantime i want to introduce you to a fellow who electrified the nation back in the 1970s. he is still at it. dr. doom they used to call him. he is not a comic book character.

he is the real deal. his words moved markets. he was always right. he was ahead of interest rates rising. he was ahead of inflation and ahead of markets in the depths of a freefall in the economy coming back, timed almost to the day. he is back. henry cuff man, after this. -- kaufman. after this. break through your allergies. try new flonase sensimist allergy relief instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist changes everything.

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neil: maybe who leaked what and when and what there was an absolute security despite information, the two leaders under the president of turkey and donald trump will issue a joint statement, but not take any questions. don't make their respective statements. i don't even know if president erdogan speaks english. they are going to speak jointly announced go back to call it a day. in the meantime, blake burman with the latest ironically the thing that came up with the russians last week. reporter: yes, speaking with a white house official yesterday, they were telling me that this would no doubt be another complicated discussion between the two leaders discussed the table obviously for the foreign trip going forward at the end of the week to israel, saudi

arabia, the vatican come and so on so forth. the issues they suspect today on the top of the list arming the kurds the turkish president, president erdogan. as you are relatedness on for the president a while ago was this briefing we just got from the national security adviser general h.r. mcmaster the story of the day whether the president gave classified information. three main points they came from h.r. mcmaster little while ago. first up is not safety if the information is classified. the second describes everything that happened in the conversation is wholly approve rear. in the russian foreign minister in the oval office and thirdly, mcmaster said the president did not compromise any sources at the national security adviser. >> what the president shared was wholly appropriate.

the story combined what wesley with other information and insinuated aboutrces and methods. so i wanted to make clear to everybody that the president in no way compromised any sources or methods in the course of this conversation. reporter: neil, this is taking up all the oxygen here in washington d.c. normally the turkish leader been at the white house, which he is right now, to be the story. the foreign trip is supposed to take place at the end of the week is here at the white house concerned that the questions surrounding it. neil: incredible. thank you, and former green beret commander michael walt on the president defending intel sharing, whatever you want to call it good i never know who to believe that these stories, but even some out on the wires right now thing among the services the "washington post" was using was a fairly reliable friend of the

president to normally support but was concerned about what wesley cannot room. i don't know if there's any truth to that. i just pass it along to say that this might be more involved in potentially more damaging to the president and he and his people are saying. what do you think? >> i can tell you i believe and i believe general h.r. mcmaster who served this country with distinction for decades now who wrote the book on speaking truth to power called their election of duty about general standing up to lbj during vietnam. someone i think we have no reason to believe within this thing on multiple occasions for the president. this is a case where president trump shared some reporting that it's been out there in terms of our laptops from airliners. it's worth remembering the russians lost an entire airliner to ice instrument flying out of egypt. you have some follow-up from

staff. what has me really worried is not so much with president trump said. it is the leaks going on. you have someone in the intelligence community so concerned about what president trump may or may not have shared but how does it fix things that go into the "washington post" ensuring additional details about it? >> colonel, and i'll do for you knowing that you know far more about this than i do a lifetime. maybe some of the leakers were concerned and they can't tell the president because he doesn't listen to them. if that is the case, that would be a worry, wouldn't it? >> you know, that's along the same lines of logic and justification that edward snowden used. [inaudible conversations] >> sure, it is. at the end of the day, and we sign up for no to the

constitution and you sign-up for a security clearance and if you disagree with something the president may have disclosed or may not have come you don't know necessarily for sure. you don't escape to run run to the press. >> so you constantly try to say your little concerned about this not listening, not listening. you've heard this from other people. we don't know whether it's real or not. he is still not listening. he was a novel candidate from a different candidate unconventional candidate. he's been there now with this behavior to be a good president and will still maybe be a good president. but this is very tricky stuff here. you can't do it. >> sure it is. but you know, neil, look at who is sitting around in the room. you've got rex tillerson come h.r. mcmanus -- h.r. mcmaster, mattis, pompeo, serious individuals who understand --

neil: some have come to the intelligence is to say here's what the president meant to say. >> that's the normal part of the process. you want that kind of feedback loop back to national security establishment to say look, this is what was discussed. this is how the russians responded and these were some things a president broached. that's a normal part of the process. i believe it was tom bossert, homeland security adviser to reach out and said this is what went on. you need the feedback loop so the next meeting we can move forward with the agenda. i don't buy that this was a 9-1-1 call on behalf of the staff and i don't buy that the people around 10 either misinformed him for lying about what was said. tree to wear a minute away from. what is the rule of thumb?

a president cannot recite talk about anything he wants to talk about with anyone he wants to talk about it with. you know, he has free rein there. what are the rules in place for classified information that might compromise the source of the information, particularly when you are sharing our potentially sharing it with the russians? >> said there is what he can do and what he should do. neil: hang on there, colonel. the president and the later. >> i am shocked. it is a great pleasure to welcome president erdogan for his first visit to the white house in years. the american and turkish peoples have been friends and allies for many, many decades. turkey was a pillar in the cold war against communism. as the bastille and against

soviet expansion and turkish kurdish in war is legendary. that is so true. turkish ldiersought bravely alongside american soldiers in the korean r and we haven't forgotten what they did. in some ways, only looked at their great reverberated in the fight in korea, it was just something that our soldiers and our great generals still remember. supreme commander general douglas macarthur singled out and praised the exemplary valor of the turkish soldier, said some of the great soldiers of the world. today we face the fight against terrorism and again we seek to face this threat together. the turkish people have faced horrible terrorist attack in recent years and even recently.

we offer our compassion to the victims that we offer our support to the turkish nation. we support turkey in the first fight against terror and terror groups like isis and the pkk and ensure they have no safe quarter, the terror groups. we also appreciate turkish leadership in seeking an end to the conscience of the whole world and i have to do is look at the front page of the papers today and you'll see exactly what we're talking about. we also support any effort that can be used to reduce the violence in syria and create the conditions for a peaceful resolution. president erdogan and i are discussing the need to reinvigorate our trade and commercial ties. these are areas where we can

build a relationship that will benefit both of our countries. military equipment was ordered by turkey and the president and we've made sure that it gets there quickly. i look forward to working together with president erdogan on achieving peace and security in the middle east, and i'm confronting the shared throughout and i'm working towards a future of dignity and safety for all of our people. mr. president, thank you for his name our country and joining us today at the white house. it is a great honor to have you with us. thank you. >> thank you. [speaking in native tongue] >> translator: mr. president, my dear friend, distinguished members of the press, on the

affidavit to wholeheartedly thank you. [speaking in native tongue] >> translator: and i would like to take this opportunity to thank president trump and his team for the generous hospitality they have shown us upon arrival. not only to my personal thoughts, but the entire members of the delegation on behalf of the entire turkish nation. thank you, mr. president. [speaking in native tongue] >> translator: and once again in your presence i would like to congratulate president trump for the legendary he has garnered in the aftermath of the elections. [speaking in native tongue] >> translator: quite recently we've had bilateral relationships with president trump [speaking in native tongue] >> translator: and we've had

the opportunity to focus on the outstanding relations between turkey and the united states that date back a long time and which are quite happily reached a level of strategic partnership. [speaking in native tongue] >> translator: the relations between turkey and the united states have been erected on democratic values and common interests. [speaking in native tongue] >> translator: keeping our outstanding relations stronger than ever will be very important not only for our common interests, but also stability of the globe and peace around the world. [speaking in native tongue] >> translator: the close

cooperation of both of the country shall demonstrate within the region, which is currently in turmoil will be very important for the rest of the world. [speaking in native tongue] >> translator: and primarily, we are alongside by each other as turkey and the united states under the united nations, nato and the g20. [speaking in native tongue] >> translator: we have been enjoying close cooperation in all of these platforms and all of these corners around the world. in the future to come, we're going to focus to make sure we are going to expand our close cooperation and build on the outstanding. [speaking in native tongue] >> translator: we are determined to expand our relationship and the united states will mark a historical

turn. [speaking in native tongue] >> translator: through the bilateral discussions, wther be discussions we have between the delegations, i think we are going to enjoy games in terms of the future of our relations. [speaking in native tongue] >> translator: we seem to agree on expanding our relations in the field of the economy, trade, reciprocal investment, energy and defense industry. [speaking in native tongue] >> translator: it is going to be very important for us to forge a close solidarity and cooperation in the field of

fighting terrorism, primarily with dinesh and all the other terrorist organizations in the region. [speaking in native tongue] >> translator: and we are committed to fighting all forms of terrorism without discrimination whatsoever than impose a clear and present threat upon our future. [speaking in native tongue] >> translator: there is no place for the terrorist organizations in the future of our region. [speaking in native tongue] >> translator: taking the region -- the region will never be accepted and is going to be against the global agreement that we have reached. [speaking in native tongue]

>> translator: and we should never allow those groups to manipulate the religious structure of the region, making terrorism as a pretext or next views. [speaking in native tongue] >> translator: those who are willing to turn the chaos and area, iraq, yemen and libya are bound to lose eventually. [speaking in native tongue] >> translator: they will never be able to turn the chaos in that part of the world into an opportunity in the terrorist organizations have blood on their hands are bound to fail. >> translator: [speaking in native tongue] >> translator: and as i have previously done so, i have been

communicated our expect haitians with a terrorist organization, which we have notified our friends at their involvement in the failed coup of july 15th in turkey. [speaking in native tongue] >> translator: and we've taken the joints that we can go forward in syria and iraq. [speaking in nativ tongue] >> translator: of course president trumps recent election big three has led to the awakening of a new set of aspirations and expectations and hopes in our region. [speaking in native tongue] >> translator: and we know by the hope of the u.s. senate nation, these hopes will not be lost in vain. [speaking in native tongue]

>> translator: and we find that it was the most necessary answer to be given to the theory machine, especially in the aftermath of the recent chemical attacks that took place. [speaking in native tongue] >> translator: and we know that in terms of keeping up with the principal and committed fight against the terrorist organization all around the world we will not repeat the mistakes of the past and will continue down this path together. [speaking in native tongue] >> translator: in the restoration and the establishment in the region in question, the alliance and the partnership and cooperation between the united states and turkey is of vital importance. [speaking in native tongue] >> translator: i hope and pray

that both of us will be committed to expanding further our cooperation in the future along with consulting each other more frequently. [speaking in native tongue] >> translator: we are laying the foundation of a new era between the two countries in terms of our relations. i hope and pray this new administration will bring auspicious results. [speaking in native tongue] >> translator: and i would like to thank president trump for his very kind and cordial invitation and i'm looking forward to hosting and turkey along with his entire family. >> thank you are very much. appreciate it. we are going to go to meetings

now. we had a very, very successful at the foreign minister of russia. our fighters against aces as general mcmaster said. i thought he said and i know he feels that we had actually a great meeting with her. we are going to have a lot of great success over the coming years and we want to get his money to help fight terrorism as possible and that is one of the beautiful things that is happening with turkey. the relationship that we have together will be unbeatable. thank you all very much. i appreciate it. we are going to meetings. neil: all right, the president wrapping up a joint statement with the leader of turkey. and again, not tipping his hand on reports out there that he revealed a bit too much in

discussions with russian officials in the white house last week, national security adviser, general mcmaster said nothing was shared here, but turkey's president was saying that this all comes back to fighting isis and terror. those two leaders have very different versions. if course we support in syria a number of kurds that we think are going to be instrumental in helping not only topple the regime, but eliminate isis. president erdogan sees those himself and we are not on the same pages that. the president leaving his first foreign trip that will call for a stop in saudi arabia to begin with, israel is about and of course the g7 summit after all of that in italy. in the meantime, if you are concerned that any of this dustup is interrupting the market, they'll find a funny way

of showing it. is the trump agenda, republican agenda for the farmer senator schumer and john mccain, director of fort o'connell. to you first on this notion that whatever you think about what is going on right now and who leaked what and whether it was classified or not, it is going to delay that agenda. does that concern you? >> based on what we know they shouldn't be a distraction to the agenda. the reason is congress can't walk and chew gum and display falls prey to media headlines. i would definitely say even the white house understands this is stalling a little bit. at the end of the day coming years at the current administration has do, get to the obama to the odometer overhauling tax refund for the 22 midterm elections. if they can do that, they can move forward your

>> at the same time real costs of thing that comes to an fbi director can hinge on that appointment of a special prosecutor. republicans certainly don't seem to want to go along with that. some do, but not enough to change that. do you think finding a new fbi director in getting one approved is going to be a herculean task? >> it will and the white house will be distracted because our president is easily distracted. he showed himself to be temperamentally ill-suited, being able to pay that vermont thing and paid attention to another. i agree with my former boss, senator schumer, it's not enough to appoint a new fbi director and senator from brooklyn is building a careful record not by senate democrats, but at the white house. i think the message carefully layered together, building a record will resonate in the midterms. neil: to find it a little odd, maybe he didn't, but i don't remember your old dos bemoaning

how sloppy hillary clinton might have been sharing information. so why now? is it because the guy in the oval office is a republican? >> now, it has to be with being president. i am in the minority. i believe the e-mail controversy was fair game in which he links just confirm information, suspicious and feelings everybody had about hillary as candidate and secretary of state s. senator. talking about the incumbent president, the person occupies the white house. neil: let me ask you then because we had eric erickson who knows one of the sources and is watching apparently unprecedented track. and what information is compromised. it may not entirely be a media versus the presidency it was so outside of the box.

he is not aware that these areso as president. >> first of all, president trump is to find a way to shut down legs because they are knee capping at every turn. to what mike was saying, that is complete another malarkey. democrats say over and over we need a special prosecutor. the problem is you have to have a climate so far we only have one crime and that is the leaking of michael flynn's name. this is all about stopping trumpet every turn. democrats don't care about doing the american people's business. all they want to do is lock trumpet every turn. >> sometimes the president provides an ammunition. >> the democrats don't care. it wouldn't matter if he was mitt romney. trade to michael, would he think about that the democrats are

little too gleeful in this? >> are self-inflicted grandson of the president was a bit more presidential in a bit more careful and thoughtful and deliberate and how it goes about the vast complicated business of governing this country, then he would be not providing ammunition and issues for democrats to discuss. >> hold on, if donald trump came out rrow that the earth round, you'd spend three days arguing the earth is round i do agree that trump needs more disciplined, shut down the legs and find an fbi air. >> it's not leaked, it is what's being discussed. neil: thank you, both. any sort of caught my eye here, but we came very close to her to want to thank you both. in the meantime, charlie gasparino is in las vegas has breaking news on what the senate is looking for right now i'm the sole russian thing. what are you hearing, buddy? >> if you hear the trump agenda be installed, here's another reason to worry the sources are

telling my producer is that the sign that intelligence committee will be looking at this whole matter of what trump said to the russian diplomats. again, these hearings are nothing to be sneezed at. they get into the weeds. the classified information that the senate intelligence committee run by senator warner and byrd who are and democrat, but these are pretty straight shooters. the fact they get into the weeds on this thing will tell you the senate is going to be preoccupied by trump, russia and classified information or a long time. yet is it hypocritical democrat on the confidentiality and wide in an e-mail server for so long to receive confidential or classified information to make a great case on that pitch is not president right now.

>> it is a little ironic that who is leaking stuff is a big deal to them then. but having said that, i'm sorry to miss you, but he's on the short list you are hearing if they ever get around to that? >> merrick garland apparently is no longer on that list. what sources are telling french words from fox's neck is that the white house is throwing cold water on his election. last week we reported when senator mike leavitt to the white house and met with mike pence and others, they were receptive to merrick garland. the obama want to be appointee to the supreme court is now the chief justice of the u.s. court of appeals. they were very receptive to that of the bipartisan guy, smart guy. but not the white house from what we understand has thrown cold water on that. they simply related to the fact that garland himself has thrown cold water on and they don't want to look like they are desperate. the white house is telling our

story says both in the house and senate that garland and it is on the list is way at the bottom. >> the names you've been hearing about, rudy giuliani, chris christie. is there difficult choices. others that are less difficult, maybe ray kelly. it'll be interesting to see who gets chosen because unless you want all-out war in the senate, and it's got to be a bipartisan choice given what trump did with comey, firing him amid the russian investigation. optics matter. comey gave the rope to hang them on. you fire when you first get into office as a lot of conservatives suggested trumpeted in "the wall street journal" editorial page said he should've done that. build fire in the middle of an investigation. optics matter. and i have to be a bipartisan choice. we'll see what the president does. he is setting on predict the

ball. for i know he will put rudy giuliani up there. neil: you never know. >> there you go. this is a career going against the grain commit challenging conventional wisdom and forever earning the moniker dr. down. that might seem very negative, that is what he saw in the middle parties that made him stand out in history again and again and again, seeing what very few people did. that was then. dr. henry kaufman now and next. . it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country.

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we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. neil: wall street shrugged off all the concerns. dow in and out of 21 show. nasdaq, s&p in and out of records. markets don't seem too concerned with all of this drama over donald trump and what is going on. but that depends on the perspective you take.

for that i to to dr. henry kaufman. he used to be known as dr. doom. for a lot of younger folks, boy that is a heck of a moniker. the reason, because in the middle of a party he would remind people, wait a minute, wait a minute, but he wasn't always doom and gloom. he accurately predicted almost to the day in august 1982, when we were in the midst of a recession things were turning around and something big and better was on the horizon. wouldn't you know he is right, each and every time. over the years i have had the opportunity to interview the good doctor. it was tutorial. so i always learned a lot. he always suffered very stupid young reporters patiently. the economist and author behind his fourth best-seller, at the time tonic shifts in financial markets. dr. henry kaufman, dr. doom. i will go with henry. >> thank you. neil: that ever bug you the dr. doom thing? >> no.

what would bug me really, if i had something that was negative, and turned out wrong. that would -- neil: wasn't always doom and gloom. >> no. neil: you famously predicted the turn around that would be wind at ronald reagan's back in '82. some of the headlines were showing back in the good old days, doctor, you were like frankenstein almost. >> in august of '82, as a result of that prediction we had the biggest rally in the bond and stock market in the entire postwar period. neil: right. we should say, back in the '70s, before interest rates took off and inflation would be a problem, you saw the inflation wave to come and how high interest rates would go. a lot of people laughed at you talking about double-digit rates and all. then it happened. do you see anything like that now over the horizon? everyone seems to feel rates are going up right now? anything like that?

>> no. i don't think we're going to return to a prime loan rate of 21.5% and long government bonds at 15%. neil: incredible, huh? >> the previous secular peak. i think we don't have the firing power in the financial system to bring that about. there are too many inhibitions in the financial system today. we have a lot of leveraging that is already going on. business corporations do not have the credit quality that they had two, three, decades ago. today, business corporations, most, many of them, are becoming below investment grade. back in 1980, in the 1980s, we had 60 some odd business corporations rated aaa. today we have one or two. neil: wow.

>> back in the 190's, we had 15 financial institutions, banks that were rated aaa today, none. so the credit quality situation is really not anywhere near that it was a couple of decades ago. neil: but the debt is worse, deficits are building up. does that worry you? >> well, the deficits, the government deficit not worrying me as much as the borrowing that is going on in the private sector today. u.s. government still is rated aa-plus and probably is the most acceptable credit in the world today. and i think for the near term will be. the dilemma is that we can't fire up the credit borrowing of business and of households because their debt levels are real

relatively high. neil: even now? >> condition of households is better than it was seven or eight years ago but it is not that strong, if you compare it with a couple of decades ago. neil: could we have another housing meltdown? >> i don't think we'll have a housing -- the late of the housing statistics just came out as you know show that the residential side is doing reasonably well and it is, there is some weaknesses in the multifamily sectors. neil: right, right. but nothing that alarms henry kaufman at this point? >> not yet. neil: not yet. >> not yet. neil: but you know, do you ever wonder, we might not get back to the cart, earlier reagan years, double-digit rates, do you ever wonder a lot of young people in particular, doctor, who are used two something mortgages and now they will be four something mortgages, five something mortgages, that to you and me is very low?

i was one of those with my wife at the time got 13.5% mortgage and we thought we were genius. >> sure. neil: isn't that adjustment enough for them, doubling of rates albeit at low levels they don't like? >> well, doubling of interest rates from today is not sickly or seasonally or anyway an enormous move. neil: true enough but gets them out of the market, right? >> but it is an inhibiting factor and i would say to you my own view is that by the time we reach the first quarter of incomes year housing will be considered to be topping out. neil: really? >> as an activity. partly by the interest rate structure. partly by the fact that prices have moved up in the housing sector considerably in recent years. so, when, and if eventually we do get a tax cut, it will come at a time probably when housing

can't be lifted. neil: do you think we need a tax cut. >> pardon me? will we? i suspect we will but timing of getting a tax cut has been considerably delayed. and. neil: because of all of this stuff going on? >> a, i think this president just like president obama put health care first on the agenda, looking at it from my perspective tactically, i think it was the wrong thing to do. i think infrastructure, tax reform, i think would have been easier to get through than dealing with obamacare. president obama made a similar mistake. neil: what do you think of this president's temperment? you've seen and worked and examined the policies of so many presidents. this one is a different fish outside of the petri dish of normal presidents? that could be a good or bad

thing what do you think? >> well, it is the most unusual situation i have seen during my lifetime in the financial markets. he has still a substantial agenda ahead. the tax reform and as i indicated the infrastructure, and, what is he going to do with the federal reserve? that is going to come up here in the incomes six, seven months. there are opening on the federal reserve board and, a chairman, the chair ladies, term expires, mrs. yellen in january of next year. this is a very critical decision the president has to make and how he will go. neil: do you think he should go to some one who is vigilant with inflation or easy money person? >> well, the interesting question is, will he go with another economist?

because in the history of the pest-world war ii fed, we had chairman martin who was not officially trained economist but had been chairman of the new york stock exchange, head of import export bank. a lot of work at columbia as a student so he was well-versed. bill miller was the only businessman that was ever put in chairman of the board, only one. he was very unsuccessful as you know. neil: if you had your dibs to be an economist. >> that will not be very easy. it has to be someone in the image of the expectations of this president. this president does favor relatively low interest rates. can he find a businessman, broad

enough, understanding enough, dealing with arcane issues that -- neil: argument we don't need interest rate as lot higher because inflation isn't that much of a problem. do you agree with that? >> not for the time-being. i don't think inflation will really roar. neil: not yet. what do you think of dodd-frank? the president wants to dial that back. he thinks it has done more harm than good. >> i would say, i never appreciated dodd-frank. it was too big, too much, too complicated. neil: yay. >> the underlying issue dealing with dodd-frank is, what to do with big institutions that are too big to fail? neil: they are still too big to fail. >> this is the issue the federal reserve didn't want to address when the glass-steagall act was the removed by a democratic administration, not by a republican. but by both democrat and republican -- neil: separating traditional

banking from investment banking. >> it was supported by secretary of the treasury, a democrat. it was supported by greenspan a republican. so both favored the removal of the glass-steagall act. neil: you think that was a mistake? >> it was a mistake because the central bank did not understand or didn't want to warn about the consolidation that would take place in the financial civil. neil: do you think, henry, if we had another bank on the brk wouldn't rescue it? >> no, we will rescue it. neil: right. >> and now we also have the idea that we can put a big institution to sleep, that the government will take it aside. that can't be done successfully because the moment the rumor is out -- neil: that is all you need. >> a big institution is in trouble, everyone will try to pull away. that is not the way to do it. neil: what do you think of goldman saks very dominant in

one administration and another? goldman is always around. a lot of goldman alums in this administration and in the lasted a administration and administration before that and before that? does goldman's influence bother you? >> influence doesn't bother me as long as they understand the national aspiration and the common good. and that has to be demonstrated. not all people that have come from the financial side have fully understood that. i think mr. paulson, when he was secretary of the treasury was under great political influence at the time. and did not know the mechanics and intricacies of money and capital markets. he was a investment banker to a large extent. i think that hurt when it came to dealing with bear stearns and then with lehman, later on.

no one presented to him or he did not ask if lehman failed, what are the consequences? what can we expect? how big is the damage going to be? if they had had a good estimate what would have happened i doubt it would be bernanke or mr. paulson. neil: but if we had rescued lehman do you think we would have any of the stuff that followed? >> i think at best it would be very minimum. neil: okay. finally, you and paul volcker, there was a time, he sings your praises, good friend, where you got more press attention when you uttered something than you did. did that bug him, you? >> no. i know paul very well. neil: right. >> he knows me very well. i consider paul an american icon. neil: absolutely. >> he is not considered that when he served as chairman. neil: he was remarkable. think about raising interest rates one point at a time, amazing.

>> not only that, he did the heavy lifting. the heaviest lifting in postwar period of any chairperson. he ought to be credited for this finally. neil: dr. henry kaufman. tetonic shifts and people and institutions. he is the real deal harkening back to a time when words mattered, more than tv anchors words. can you imagine? we'll have more after this. i count on my dell small business advisor

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neil: ever wonder who the leakers were that get this information get out there, washington wash post reported. "new york times" saying israel was source of secret intelligence president gave to russians. this might have compromised our relationship with israel. this concerns the middle east and syria, who knew what about what they were planning, more to the point, isis that but that israel, we might have compromised that relationship, according to "the new york times" with israel. we'll keep you posted on that. trump administration already ended obamacare enrollment for a lot of small business. there is a lot more going on than meets the eye. gerri willis with a more on that.

reporter: trump administration ending a failed program for small business coverage, called shop, mandated by the affordable care act. it was developed to allow small businesses to enroll in a aca coverage but the program, quote, failed to sign up significant number of small employers, cordtoring the centers for medicaid and medicare services n fact of the nearly 30 million small businesses in this country, less than 8,000 or just .1 of a percent of small businesses currently participate in the program. just 40,000 individuals are covered nationwide. now the companies will still be able to get tax credits to offer plans to their employees but it won't be able to use the website to enroll workers. instead they will work directly with insurance companies through brokers and agents that registered with shops. the obamacare created the shops program for pathway to coverage for people working at smaller companies, ones not mandated to offer health insurance by the 2010 law.

cbo, congressional budget office, estimated 4 million people would enroll in shop. boy were they off. 2thousand employers, covering 230,000 workers participated ultimately in the program which has two arms. one enrolls via state exchanges and one enrolls via the federal exchange this program didn't work, out the door and probably a darn good thing. neil? neil: thank you, gerri willis, thank you very much. getting more from the "new york times" report cites israel as source of information that the president shared with the russians, quoting a statement emailed "the new york times," ron dermer, the israeli ambassador to the u.s. that the two country was maintain very close counterterrorism relationship. israel has full confidence in our intelligence-sharing relationship with the u.s. looks forward to deepening this relationship in years ahead under president trump. went on to say with the meeting with the russian ambassador and foreign minister, mr. trump disclosed this intelligence about islamic state terrorist

plot, "new york times," this is not coming from mr. dermer. at least some of the details from the united states, about that plot came from the israelis. it was compromising relationship with a friend and ally in the middle east. this days ahead of the president going to israel. he kicks off that trip on friday, first stop will be saudi arabia where this now will become no doubt topic one. we'll have more after this. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future.

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neil: you know, is it me or is this comey job going to be hard to fill? taking himself out of the running late yesterday and now we got word the republican senator from texas is taking himself out of the running saying i quote here now more than ever the country needs a well encouraged fbi director. i've informed the administration i'm committed to helping them find such an individual and the best way i can serve is continuing fighting for a conservative agenda in the united states senate. there wouldn't be much doubt that if he took that job that he could find at least the republican governor could appoint a republican replacement but if anyone gets, remember, there's an aggressive democratic challenger to texas senator ted cruz, and they're not taking anything for granted. of course that is taken out of the equation as john says he's going to stay in the united states senate. all of this on a day we've got drama back and forth that

israel might have been a country behind that intelligence that the president shared with the russians. and the markets totally unaffected by any of this. this is their way of saying all that drama that everyone is losing their heads about, no drama here. just follow the money. so far the money says good thingsre coming. so they hope. cheryl casone in for trish regan. >> hey, neil, we're going to follow on both of those stories. neil just said this and this just broke a few moments ago during his show. the new york times is reporting that israel is the source of the intelligence that trump may have revealed to the russians. israel releasing a statement that it has our full confidence and our intelligence sharing relationship. a lot is changing just in the last few months. hello, everybody, i'm cheryl ca casone, and i'm in for trish regan, and i would like to welcome you to the intelligence report. national security adviser hr